Usually time is on your side
when you buy a car, and the longer
you can wait the better deal you can get. There are certain times
when you can maximize your negotiating power. By timing your
purchase and getting competitive quotes at sites like
Edmunds you can save thousands on your next car.
The last 3 days of any month are usually a great time to purchase
a car, especially if you are buying a new car. That's because car
manufacturers place minimum sales objectives on each individual
dealer each month, and normally on the last day of the month the
dealership is still scrambling to meet those goals. The sales
manager is more likely to accept an offer that makes zero profit, or
even loses a small amount of money, if it can help him meet his
monthly quota.
That's because extra incentives are often tied into meeting
objectives. A sales manager or salesperson who meets a monthly
objective may qualify for a cash bonus, a trip, or some other kind
of incentive.
Dealership incentives are also sometimes tied into meeting sales
objectives. A company that meets their sales goal may receive a cash
incentive for each car they have sold this month. The amount varies.
Some auto makers don't participate in any kind of dealer incentives,
or only do it for a limited time. Others could pay as much as $500
for each car sold directly to the dealership.
Rest assured they are not going to refund everyone who bought a
car that month $500. But it does give more bargaining power to those
who come in later in the month.
The end of the model year is also a great time to buy. When the
2007 models start to hit dealer showrooms automakers will increase
rebates and incentives to quickly move out the 2006 units. That
would be a great time to buy a 2006 model as dealers are anxious to
move these vehicles off their lot. However, if you really want a
2007 at that time you'll have to pay or wait a while. The pricing of
new models will not be very flexible until the old models are gone.
Of course you may have to base your decision to buy on other
factors. If you need a car because your old car just died, or it was
stolen or totaled, then you may not be able to wait. But if you can
time your purchase to the end of the month, or the end of the model
year you may save some money.
